The objective of this paper is to propose a modelling of a small compressed air energy storage system, which drives an induction generator based on a field-oriented control (FOC) principle for a renewable power generation. The proposed system is a hybrid technology of energy storage and electrification, which is developed to use as a small scale of renewable energy power plant. The energy will be transferred from the renewable energy resource to the compressed air energy by reciprocating air compressor to be stored in a pressurized vessel. The energy storage system uses a small compressed air energy storage system, developed as a small unit and installed above ground to avoid site limitation as same as the conventional CAES does. Therefore, it is suitable to be placed at any location. The system is operated in low pressure not more than 15 bar, so, it easy to available component in country and inexpensive. The power generation uses a variable speed induction generator (IG). The relationship of pressure and air flow of the compressed air, which varies continuously during the discharge of compressed air to drive the generator, is considered as a control command. As a result, the generator generates power in wide speed range. Unlike the conventional CAES that used gas turbine, this system does not have any combustion units. Thus, the system does not burn fuel and exhaust pollution. This paper expresses the modelling, thermodynamic analysis simulation and experiment to obtain the characteristic and performance of a new concept of a small compressed air energy storage power plant, which can be helpful in system designing of renewable energy electrification. The system was tested under a range of expansion pressure ratios in order to determine its characteristics and performance. The efficiency of expansion air of 49.34% is calculated, while the efficiency of generator of 60.85% is examined. The overall efficiency of system of approximately 30% is also investigated.